Boeing, on new drive to boost substantially its income from aftermarket services, is actively reversing its yearslong course of extensive outsourcing.
In the latest sign of a new approach, Boeing announced internally Monday it is setting up a new in-house unit called Boeing Avionics to “pursue the development and production of avionics and electronics systems.”
Avionics are the core electronics used to manage aircraft systems including flight controls, communications, navigation, sensors and warning systems, and flight deck displays.
In a company memo to employees, Boeing chief executive Dennis Muilenburg referred to the move as a “strategy to build targeted vertical capability.
That’s business-speak for a company doing more of the work itself rather than handing it off to outsiders, and a term that must worry current systems suppliers such as Rockwell Collins and Honeywell — which may get less avionics work on Boeing’s next new airplane.”
What Boeing plans to do with its new unit
It will “focus on avionics systems such as those designed for navigation, flight controls, information systems and other core avionics” and will develop such systems for future airplanes, targeted for entry into service in the next decade.
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